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Dealing with Intraregional Flows in Spatial Econometric Gravity Models

Kazuki Tamesue () and Morito Tsutsumi
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Kazuki Tamesue: University of Tsukuba
Morito Tsutsumi: University of Tsukuba

Chapter Chapter 6 in Spatial Econometric Interaction Modelling, 2016, pp 105-119 from Springer

Abstract: Abstract While LeSage and Pace (J Reg Sci 48:941–967, 2008) had succeeded in modeling origin–destination (OD) flows by using a spatial econometric approach (spatial econometric gravity model), most studies have not paid appropriate attention towards the treatment of intraregional flows. This study discusses issues regarding intraregional flows within the spatial econometric gravity model, mainly focusing on the definition of internal distances and unobserved intraregional flows, and introduces approaches to deal with associated problems. Specifically, the Expectation-Maximization (EM) algorithm method in Tsutsumi and Tamesue (Environ Plan B 39(6):1006–1015, 2012) and Heckman’s two-step estimation method are discussed for solving the unobserved intraregional flow issue. The results from the application of these methods to Japanese migration data show validity of both approaches. The study also takes an experimental analysis regarding to the difference in nature of interregional and intraregional flows.

Keywords: Gravity; Intraregional flows; Spatial econometrics; Spatial interaction; C18; C40; C43; C51 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/978-3-319-30196-9_6

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